Builders FirstSource (NYSE:BLDR) Shares Down 6.2% – Here’s Why

Shares of Builders FirstSource, Inc. (NYSE:BLDR) dropped 6.2% during trading on Wednesday . The stock traded as low as $103.13 and last traded at $102.8310. Approximately 821,683 shares traded hands during trading, a decline of 62% from the average daily volume of 2,189,003 shares. The stock had previously closed at $109.68.

Analyst Ratings Changes

Several research firms have issued reports on BLDR. William Blair initiated coverage on Builders FirstSource in a research note on Thursday. They set an “outperform” rating for the company. DA Davidson cut their price objective on Builders FirstSource from $115.00 to $111.00 and set a “neutral” rating for the company in a research report on Monday, February 2nd. Deutsche Bank Aktiengesellschaft decreased their target price on shares of Builders FirstSource from $117.00 to $102.00 and set a “hold” rating on the stock in a research report on Monday. Wells Fargo & Company increased their target price on shares of Builders FirstSource from $115.00 to $120.00 and gave the stock a “cautious” rating in a research note on Wednesday, February 11th. Finally, Stifel Nicolaus reduced their price target on shares of Builders FirstSource from $124.00 to $115.00 and set a “hold” rating on the stock in a research note on Tuesday, December 16th. Nine research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $127.39.

Builders FirstSource Price Performance

The company’s 50-day moving average price is $114.86 and its 200-day moving average price is $119.37. The company has a quick ratio of 1.16, a current ratio of 1.86 and a debt-to-equity ratio of 1.02. The firm has a market cap of $11.51 billion, a price-to-earnings ratio of 26.82, a PEG ratio of 2.56 and a beta of 1.56.

Builders FirstSource (NYSE:BLDR) last announced its earnings results on Tuesday, February 17th. The company reported $1.12 earnings per share for the quarter, missing the consensus estimate of $1.30 by ($0.18). Builders FirstSource had a return on equity of 17.89% and a net margin of 2.87%.The business had revenue of $3.36 billion for the quarter, compared to analysts’ expectations of $3.46 billion. During the same period in the previous year, the company earned $2.31 earnings per share. Builders FirstSource’s quarterly revenue was down 12.1% on a year-over-year basis. On average, equities research analysts forecast that Builders FirstSource, Inc. will post 11.59 EPS for the current year.

Institutional Investors Weigh In On Builders FirstSource

Several large investors have recently bought and sold shares of the stock. Capital International Investors purchased a new stake in shares of Builders FirstSource during the 3rd quarter worth $429,640,000. Northwestern Mutual Wealth Management Co. raised its stake in Builders FirstSource by 99,084.1% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,241,561 shares of the company’s stock valued at $230,634,000 after buying an additional 2,239,301 shares in the last quarter. Franklin Resources Inc. lifted its holdings in Builders FirstSource by 2,498.8% during the 3rd quarter. Franklin Resources Inc. now owns 1,854,525 shares of the company’s stock worth $224,861,000 after buying an additional 1,783,164 shares during the last quarter. Sands Capital Management LLC boosted its position in shares of Builders FirstSource by 139.1% during the 3rd quarter. Sands Capital Management LLC now owns 2,430,902 shares of the company’s stock worth $294,747,000 after acquiring an additional 1,414,129 shares in the last quarter. Finally, Victory Capital Management Inc. increased its holdings in shares of Builders FirstSource by 235.1% in the 3rd quarter. Victory Capital Management Inc. now owns 1,893,483 shares of the company’s stock valued at $229,585,000 after acquiring an additional 1,328,363 shares during the last quarter. Hedge funds and other institutional investors own 95.53% of the company’s stock.

Builders FirstSource Company Profile

Builders FirstSource, Inc is a leading supplier of structural and value-added building products and services to professional contractors, homebuilders and remodelers. The company provides a comprehensive range of materials and prefabricated components that support all phases of residential construction, from site development and framing to finishing and installation.

The company’s core offerings include lumber and lumber sheet goods, windows and doors, millwork, roofing and siding, and engineered wood products such as roof and floor trusses.